ANNUAL
REVIEW
2009
BRANZ is the New Zealand
building industry’s
centre of science and
innovation.
Our research enhances
building performance
and cost-effectiveness,
contributes to the success of
the building industry and the
wider economy and supports
the development of a higher
quality built environment for
all New Zealanders.
CONTENTS
A stronger future for building and construction
…………………
3
About BRANZ
…………………
4
BRANZ people
…………………
7
Financial summary
…………………
9
Industry headed for brighter times
…………………
10
What are the industry’s future needs?
…………………
12
Sharing BRANZ’s knowledge
…………………
14
Building knowledge about appraisals
…………………
16
Will brick veneer stand up to the big one?
…………………
18
Improving New Zealand’s fire safety
…………………
21
Improving New Zealand’s energy efficiency
…………………
23
Contracted research
…………………
26
FINANCIAL STATEMENTS
…………………
27
Income Statement
…………………
28
Statement of changes in equity
…………………
29
Balance Sheet
…………………
30
Statement of Cash Flows
…………………
31
Notes to the Financial Statements
…………………
32
Audit Report
…………………
39
Directory
…………………
40
| BRANZ GROUP Annual Review 2009 |
1
Graham Coe
Chairman
h i a
2
| BRANZ GROUP AnnuAl Review 2009 |
Pieter Burghout
Chief Executive
A STrONgEr
fuTurE fOr
buildiNg ANd
CONSTruCTiON
brANZ has continued to deliver value
during challenging times.
more flexibility into the design of brick veneer buildings (page 18) and costeffectively improve energy efficiency (page 23), to name just a few.
Over the past year1, BRANZ completed its restructuring, delivered a very
strong budget out-turn against a significant decrease in Building Research
Levy income and continued to deliver excellent research.
BRANZ research is also making New Zealand buildings more durable, safer
and healthier, and helping the industry to build more efficiently and cost
effectively and plan ahead for customers’ and regulators’ future demands.
In May 2008, 6 years after the establishment of a funder-provider
split, BRANZ was reunited under a single Board and Chief Executive.
The Board is very pleased that the bringing together of the two
organisations has been done quickly and gone smoothly – to the credit
of all involved.
The quality and impact of BRANZ’s research output is a great credit to
its staff, and we wish to record our sincere appreciation for their efforts
during another challenging year.
Though the split had brought benefits in terms of transparency, it also
imposed high costs and meant that BRANZ was not always working
towards a single agenda.
The construction industry is a significant part of New Zealand’s economy
and, in some respects, acts as a barometer for wider economic confidence.
The reunited BRANZ has stepped up its industry engagement to ensure that its
research clearly makes a real and practical difference now and into the future.
It has also put structures in place to ensure high levels of transparency
and accountability for expenditure of the Building Research Levy.
We wish to record our appreciation to Chris Preston who, as acting Chief
Executive, shepherded this process until September 2008.
impact of brANZ research
The current economic climate has emphasised the importance of research
that has practical benefits and adds value.
During the year, BRANZ conducted or funded studies that include helping to
improve the fire safety of New Zealand buildings (see page 21), introduce
Economic turbulence
The industry experienced an extremely difficult year as New Zealand faced a
recession and work volumes in the residential building sector slowed.
As a result of the slowdown, there was a $2 million reduction in the
Building Research Levy for the year 2008/2009. BRANZ responded by
reducing costs and, as a result, still recorded a healthy budget surplus,
which will provide a cushion during the next year and beyond.
There are some challenging times still to come, but BRANZ is now placed to
support the industry and the wider economy as it moves towards recovery.
Graham Coe
Chairman
Pieter Burghout
Chief Executive
1 BRANZ’s financial year – the period covered by this Annual Review – runs from
1 April 2008 to 31 March 2009.
| BRANZ GROUP AnnuAl Review 2009 |
3
About BRANZ
Who is BRANZ
The Building Research Association of New Zealand Incorporated (BRANZ
Inc) was established in 1969 to promote and carry out building research.
It receives income from the Building Research Levy, which is collected
when building consents are processed. The current Levy is 0.1% of the
contract value of each consented project over $20,000. Under the Building
Research Levy Act 1969, the funds raised through the Levy must be
used to promote and conduct building-related science and research.
BRANZ is independent and industry-owned. It is not part of the
government sector, although it naturally works closely with government
bodies and stakeholders.
BRANZ research investments
BRANZ Ltd
BRANZ Inc owns BRANZ Ltd, which carries out building research
and informs the industry about the results of that research. BRANZ
Ltd carries out contracts funded from the Building Research Levy
and also receives funding from other sources, including the
Foundation for Science, Research and Technology, and commercial
research activities.
Conducting commercial research gives the business increased depth and
breadth and, therefore, allows BRANZ Ltd to attract and retain the highquality staff and facilities needed to support its research programme for
the benefit of the industry as a whole.
BRANZ Ltd’s structure includes:
❚❚ Science and Engineering Services – incorporating:
• Fire and Structural Engineering
• Building Performance (including weathertightness, ventilation,
materials, durability and insulation)
• Sustainability
• Economics
• Building System Evaluations
• Advisory Services
• BRANZ Pty (which administers BRANZ’s Australian contracts)
4
| BRANZ GROUP Annual Review 2009 |
❚❚ Marketing and Knowledge Management – incorporating Publications,
Marketing, Education Services and BRANZ’s library
❚❚ Finance, Human Resources, IT and Administration
❚❚ Strategy and Innovation
❚❚ Business Development and Contracts.
Other subsidiaries
BRANZ Inc also has a shareholding interest in the following research and
information consortia:
❚❚ Beacon Pathway Ltd (www.beaconpathway.co.nz) – a research
consortium working to find affordable ways to make New Zealand
homes more sustainable. BRANZ is one of the five shareholders,
with matched investment from the Foundation for Research, Science
and Technology.
❚❚ The Structural Timber Innovation Company Ltd (www.stic.co.nz) – a
research consortium established during 2008/09 to investigate
structural timber solutions for large buildings. Other shareholders
include universities, timber companies, and there is matched funding
from and the Foundation for Research, Science and Technology.
❚❚ Construction Information Ltd (www.masterspec.co.nz) – a joint
initiative of BRANZ Inc, the Institute of Architects and the Registered
Master Builders Federation, developing specification systems for the
building and construction industry.
The consortium approach allows for a high level of cost-effectiveness as
every dollar of BRANZ Inc funding leverages several dollars of funding from
other sources.
BRANZ Inc was also part owner of GreenBuild Ltd, a consortium working
to develop a national database on the sustainability of building products.
GreenBuild Ltd was closed during 2008/09. BRANZ may work with
others in the industry in future on similar initiatives.
Other uses of Levy funding
As well as funding research conducted by BRANZ Ltd, BRANZ Inc also
provided Levy funding for:
❚❚ research by other organisations (see page 26 for details)
❚❚ scholarships for post-graduate university students in buildingrelated fields.
brANZ board
A single BRANZ Board – for both BRANZ Inc and BRANZ Ltd – was
established in May 2008, replacing separate Boards that had operated
since 2002. The Board is elected to serve the intents of the industry and
is made up of the following people:
❚ Graham Coe, Chairman – Builder, past National President of the Registered
Master Builders Federation.
❚ Peter Fehl, Deputy Chairman – Engineer, University of Auckland Director
Facilities Management.
❚ Shane Brealey – Managing Director, NZ Strong Construction Ltd.
❚ Mike Fox – Chairman, Registered Master Builders Federation.
❚ Rob Kidd – Chief Executive, James Hardie Ltd.
❚ Rod Macdiarmid – Architect, Pelorus Architecture Ltd.
❚ Chris Preston – former Acting Chief Executive, BRANZ Ltd.
brANZ SOurCES Of iNCOmE
BRANZ Inc receives Levy funding
BRANZ Incorporated
BRANZ Inc invests Levy funding
BRANZ Ltd
brANZ Chief Executive
Pieter replaced Chris Preston, who had served as acting Chief Executive
from September 2007. As mentioned above, Chris now serves on the
BRANZ Board.
Research
organisations
Construction
Information
Ltd
University
scholarships
Structural
Timber
Innovation
Company
Ltd
Pieter Burghout became Chief Executive of BRANZ Group – both BRANZ
Inc and BRANZ Ltd – in September 2008.
Pieter formerly served as Chief Executive of the Building and Construction
Industry Training Organisation, New Zealand Registered Master Builders
Federation and the Contractors’ Federation. He is a qualified builder,
has a degree in law and holds a Master of Business Administration.
Beacon
Pathway Ltd
BRAnZ ltd
also receives
government
science funding
and commercial
incomes
Conferences
Other industry
events
Research
consortia
also receive
funding from
consortium
funders
BRANZ Board of Directors
| BRANZ GROUP AnnuAl Review 2009 |
5
Accountability for the building
research levy
brANZ restructuring
The Building Research Levy is administered by BRANZ Inc, which had its
own Chief Executive and Board for the 2002–2008 period. BRANZ Inc, in
turn, funded BRANZ Ltd and other organisations to conduct and promote
building research.
❚
That structure had introduced a measure of greater transparency and
discipline to BRANZ’s use of the Building Research Levy. However, having
two organisations with separate Boards, Chief Executives and senior
management also contributed to uncertainty over research objectives,
added to costs and resulted in a level of industry confusion.
❚
In May 2008, the BRANZ Group was reunited under a single Board and
Chief Executive.
Transparency and accountability
BRANZ remains accountable to the industry for its use of Levy funding
through the following mechanisms:
❚ The Building Research Advisory Council (BRAC) – This 19-member
body meets twice yearly and has representation from building,
engineering, architecture, property management, the government,
and the wider business sector. It elects the BRANZ Board, advises on
❚
❚
❚
❚
issues affecting the future of the industry and informs development
of the annual research agenda. Early in 2009, former Consumer
NZ Chief Executive David Russell joined BRAC to provide a
consumer voice.
The Research Agenda Guidance Committee – This was established as a
four-member body in 2008 and has been expanded to eight members in
2009. It has representation from the wider industry, the Department of
Building and Housing and BRANZ. This committee advises on BRANZ’s
annual research and information agenda.
The Levy Allocation Guidance Committee – This is a five-member
body (including one BRANZ representative) established in 2008. This
committee advises on allocation of the Building Research Levy to
BRANZ Ltd and other research organisations.
The Levy Administration Manager, who is employed by BRANZ Inc,
reports to the Board Chair and also reports directly to the Building
Research Advisory Council on BRANZ’s use of the Levy.
Annual publication of BRANZ’s research agenda.
Planned introduction of independent audits of the efficiency and
effectiveness of Levy-funded research projects.
Regular publication of news about Levy-funded research through
the BRACe and Levy Investment News electronic newsletters and
Build magazine.
BRAC members
6
| BRANZ GROUP AnnuAl Review 2009 |
brANZ pEOplE
Staff satisfaction and retention
improves.
“Turnover is stable, staff
numbers are stable. People
are working together well. They
are optimistic about the future
and feel they can make a
difference.”
As a science and research organisation, BRANZ is only as good as
its people.
Staff numbers
At 31 March 2009, the Group employed 92 staff (full-time equivalents).
Almost 60 of those are scientists, engineers and technicians working to
improve the knowledge base of the building and construction sector.
Another 12 are engaged in informing the industry about the results
of research.
Remaining staff are employed in management, IT, finance and other
areas that support BRANZ’s mission of promoting and conducting
building research.
The number of staff employed at BRANZ has declined from over 100
since late 2007, reflecting a restructuring aimed at ensuring industry
resources are used effectively (see page 9) and the closure of BRANZ’s
small Australia office.
BRANZ employs a diverse workforce in terms of age, life experience
and nationality.
Turnover and retention
In the year to 31 March 2009, staff turnover
was 13%. This is a 17% decrease on turnover
from April 2008.
After a “challenging” year due to restructuring,
BRANZ staff are now looking ahead positively,
says Human Resources and Administration
Manager Jacqui Nicholls.
Jacqui Nicholls – Human Resources
and Administration Manager
BRANZ continued to do well
at retaining senior scientists
and researchers. Thirty-eight
staff have been with the
organisation for 10+ years,
including 12 who have served
for 20+ years. The longestserving staff member has been
with BRANZ for 35 years.
While this means that BRANZ benefits from a wealth of institutional
knowledge and research expertise, it has also highlighted the importance
of career development for younger researchers, and of retaining and
passing on knowledge. BRANZ has taken steps to address these issues.
Staff development
In BRANZ’s 2008 workplace survey, more than 70 percent of staff reported
positive overall perceptions of the organisation.
More than 80% felt positive about the team they worked for, and more
than 70% felt positive about their own job and the person they reported
to. Most were positive about BRANZ’s culture and values and felt that staff
were working towards a common purpose.
“ We’re seeing a lot more stability and staff are
feeling positive about where we’re going.” –
human resources and Administration manager
Jacqui Nicholls
| BRANZ GROUP AnnuAl Review 2009 |
7
While staff were also generally positive about the recognition and
feedback they received for their work, and about communication and
cooperation across the organisation, BRANZ identified these as areas
that could be improved.
During the year to 31 March 2009, BRANZ recorded nine very minor
injuries – for example, cuts and bruises, a minor burn, and a back strain.
Dexterous gloves were introduced to protect from cuts and abrasions.
No serious injuries have occurred at BRANZ for over 10 years.
To achieve that, BRANZ has introduced leadership and project management
training. Further skills development initiatives will be introduced during the
coming year.
health and safety
For an organisation where staff routinely work with hazards such as
construction materials and fire, BRANZ continued its excellent health
and safety record during the year.
8
| BRANZ GROUP AnnuAl Review 2009 |
During the year, BRANZ passed its ACC Workplace Safety Management
Practices Audit, reinforcing the strong health and safety culture
at BRANZ.
fiNANCiAl
SummAry
brANZ recorded a surplus in the year
to march 2009 despite a $2 million
reduction in levy income.
financial position
A strong result during the year sets BRANZ up well to cope with an expected
downturn in Levy income during 2009/10.
At 31 March 2009, BRANZ Group had:
❚ total assets of $27.6 million, an increase from $23.7 million in the
previous financial year
❚ net assets of $24.9 million, an increase from $21.3 million in the
previous financial year.
income and spending
BRANZ Group’s improved financial position was mainly the result of the
$3.7 million surplus recorded during the year.
During the year to 31 March 2009, BRANZ Group recorded a before-tax
financial surplus of $3.73 million.
As well as looking to hold some reserves as a “back-up” for when the
need might arise, $8 million of the reserves has been earmarked for the
redevelopment of BRANZ’s research facilities and premises at Judgeford,
Porirua, north of Wellington.
This result reflectedf the following:
❚ Income of $21.09 million, which was $1.58 million lower than in
2007/08. This drop in income resulted from a $2 million fall in Building
Research Levy income, partially offset by increases in commercial
income and interest.
❚ Spending of $17.36 million, which was $1.58 million lower than in
2007/08. The drop in spending resulted from reduced staffing costs as
a result of the Group’s restructuring, along with smaller savings made
across various other expense categories.
The BRANZ Board has agreed with the management recommendation that
BRANZ uses its reserves to offset a projected $1 million shortfall in the
BRANZ budget for 2009/10, so as to maintain research momentum and
staff cabability.
brANZ inc uses of levy
$ 75,000
$ 150,000
$ 619,250
$ 4,373,050
$ 105,000
use of building research levy income
During the year to 31 March 2009, BRANZ Inc used funding from the
Building Research Levy to purchase research from:
❚ BRANZ Ltd ($6.49 million), including Fire and Structural Engineering,
Building Performance (weathertightness, ventilation, materials and
insulation), Sustainability, Economics, Advisory Services (including
contributions to standards and the Building Code) and Information
Services
❚ Industrial Research Ltd ($107,000)
❚ Beacon Pathway Ltd ($150,000)
❚ Structural Timber Innovation Company Ltd ($75,000)
❚ research scholarships ($165,000)
❚ other external research providers ($347,000).
$ 2,010,950
BRANZ Ltd Science and Engineering
Research contracts
BRANZ Ltd Information Services
Beacon Pathway
BRANZ Ltd Corporate
Structural Timber Innovation Council
| BRANZ GROUP AnnuAl Review 2009 |
9
Industry
headed for
brighter
times
The industry is likely to experience an
upswing in 2010.
“We tend to go through cycles of overbuilding and underbuilding,” says
Ian, “and at the moment, we’re underbuilding quite significantly.”
After some challenging times, the building industry should start to feel a
tail wind in mid-2010 with an upswing in new home building, according to
modelling by BRANZ Economist Ian Page.
At the same time, strong migration – reflecting the fact that New Zealand’s
economy is so far weathering the global economic storm better than many
– is also contributing to new home demand, as New Zealanders return
from overseas and the number leaving falls.
Ian forecasts building consent values 5 years ahead, based
on data about existing home sales, migration, interest rates,
employment, economic growth and the overall state of
the economy.
“To some extent, we are insulated,” says Ian. “I think that’s because the
financial sector is not such a big part of our economy and also because
a lot of our exports are food commodities, and regardless of economic
circumstances, people always need to eat.”
In the year to March, new home consent values dipped by about 15%,
while the value of commercial, industrial and institutional consents
remained relatively stable.
Preparing for the future
While the industry can expect challenging times to continue through-out
2009, Ian says we should start to see a recovery about the middle of
next year.
That recovery is likely to be fairly strong, with new home consent values
forecast to rise by about 20% in each of the 2 years starting March 2010
and continuing to grow in the following year.
Ian’s building consent forecast is one of many examples of BRANZ
research that provides advance notice so the industry – and the country –
can prepare for future developments and challenges.
Ian has also completed research on future housing needs, which found
that, over the next 10–15 years, there will be strong trends towards multiunit dwellings and towards rental properties. In turn, the trend will be
towards those properties being managed by large-scale property trusts.
Underlying strength
The expected growth will be “a bit of
a catch-up” after a year in which the
number of new homes being built has
declined from 25,000 in a typical year to
about 15,000.
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| BRANZ GROUP Annual Review 2009 |
By forecasting future growth, BRANZ helps the
industry to plan ahead and to weather
challenging times.
New dwelling types to 2016
Average number per year over the decade
12,000
Multi-units – medium
to high rise
10,000
Multi-units – low rise
8,000
Detached house
6,000
4,000
2,000
0
Auckland/
Northland
Waikato/
BOP
Taranaki/
Hawkes Bay/
Gisborne
Wellington/
Manawatu/
Wairarapa
Nelson/
Tasman
Canterbury
Otago/
Southland
Regions
Both developments will have implications for the industry. “It is likely to
mean larger building firms, as opposed to 1 or 2 person firms,” says Ian,
“and, increasingly, the industry will be building for bigger clients.”
BRANZ Inc also used the Building Research Levy to fund research from
other providers about population growth and new housing needs, and about
construction industry boom-bust cycles.
Conducted by the Centre for Advanced Engineering, the boom-bust
research sought to address the industry cycle of a “rapid upward phase”
marked by inflated prices and lack of competition followed by a downward
phase involving “competitive cost-cutting, pressure on margins and future
pressure on quality”.
As BRANZ Chief Executive Pieter Burghout explains, the research called for a
more strategic approach by both the government sector and the industry.
“We know there are going to be
industry ups and downs. It has
happened for the last hundred
years and it will probably
happen in the next hundred.
The key is, how do we help
people in the industry see what
the early indicators are and how
to run their business differently
at different stages in the cycle.”
says Pieter.
Ian Page – BRANZ Economist
“Forecasting is the first step
in understanding the cycle,
and then we can help industry
practitioners prepare for and
survive the cycle.”
| BRANZ GROUP AnnuAl Review 2009 |
11
What are the
industry’s
future needs?
To support the industry and contribute
to New Zealand’s built environment,
BRANZ has to predict the future.
Building and construction research can take a long time. Whether the
task is understanding weathertightness, profiling energy use in New
Zealand buildings or developing computer models to aid design, research
projects can take years to reach full completion.
That means that BRANZ has to be ahead of future trends. To set a research
agenda, it has to predict what builders, designers, regulators and others
will want or need to know in 3, 5, or 15 years’ time.
To go about this task, BRANZ considers international trends and changes
in government policies and strategies, but its main source of information is
the industry itself. BRANZ’s research agenda is influenced by:
❚❚ the Industry Needs Survey – a bi-annual survey sent to about 4,500
industry contacts
❚❚ calls to BRANZ’s Advisory Helpine (see page 15)
❚❚ industry workshops
❚❚ input from the Building Research Advisory Council and the Research
Agenda Guidance Committee.
The 2008/09 research agenda
In 2008, the Industry Needs Survey was expanded to cover a much wider
range of people and organisations than in the past.
Surveys were sent to over 4,500 individuals. Of those, 948 responded,
including more than 430 builders and more than 230 architects
and designers. Other respondents included surveyors, developers,
manufacturers/importers and government
or research agencies.
Respondents identified the top 5
research priorities for the next five years
as: sustainability and environment
issues; energy and insulation; materials
12
| BRANZ GROUP Annual Review 2009 |
performance, the building
New Zealand’s people.
envelope and housing needs
of
BRANZ’s 2008/09 research agenda reflected these priorities. The agenda,
approved by the BRANZ Board, focused on research that:
❚❚ supports the future development of the industry by helping it to cope
with ‘what comes next’ – for example, materials durability, energy and
water efficiency, moisture and indoor air quality, and understanding
future housing needs
❚❚ assists Building Codes and standards to operate well in order to deliver
the built environment they are intended to establish.
On the following pages, you will find case studies and further details of
this research.
Deeper industry connections
During the year, BRANZ also engaged with industry leaders on their goals
for a longer-term (15 to 20 years) timeframe, with key issues centred on
future management of infrastructure and urban planning, quality standards
and skills, greenhouse gases and waste, changing demographics and the
future of the existing housing stock.
Chris Kane, BRANZ Strategy, Innovation and Quality Manager, says a long-term
vision is needed to ensure that BRANZ and other research organisations all
contribute to a national building research agenda that meets future needs.
“There’s very little point in doing research for the sheer fun of it. It has to
be going somewhere,” he says. “If we want a better built environment, we
need to know what that looks like and how we’re going to get there.”
“ We’re owned by the industry and we’re responding to that by developing broader, deeper
connections.” – Chief Executive Pieter Burghout
As part of that process, BRANZ is committed to developing broader and
deeper industry connections in order to ensure that its agenda genuinely
mirrors long-term industry needs and that it’s held accountable for relevant
research outcomes.
One of the best ways to engage with an industry is to ask its members to
help you paint some pictures of the future. BRANZ has been developing
some scenarios that depict the built environment in 2025, and help
explain how today’s choices might influence tomorrow’s buildings – and
tomorrow’s building industry. The work will be complete in August 2009.
It has already helped BRANZ evolve a more robust research Agenda for
2010 and beyond, and will then help the industry engage in creating a
vision and direction for itself.
During 2008/09, that engagement has also included:
❚ establishment of the Research Agenda and Levy Allocation Guidance
Committees
❚ enhanced communication with the Building Research Advisory Council
through establishment of the BRACe newsletter
❚ establishment of a programme of engagement with industry CEOs and
relevant representative bodies.
BRANZ also continued to further strengthen its connections with
the Department of Building and Housing, the Energy Efficiency and
Conservation Authority and Standards New Zealand to ensure it better
understands their work programme.
BRANZ is also committed to working with the wider industry in response to
outcomes from the Sector Productivity and Urban Intensification Taskforces
which were established in 2008 and whose reports are due in mid-2009.
“We’re owned by the industry, and we’re responding to that by developing
broader, deeper connections,” says BRANZ Chief Executive Pieter Burghout.
“If the industry feels a strong level of input into and ownership of BRANZ,
they’re more likely to use our research and information when it comes out.”
research for a stronger
economy
The long-term agenda is important not only for the industry but also for
the wider economy.
As Levy Administration Manager John Duncan points out, research by
Business and Economic Research Limited (BERL) has found that the
building and construction sector forms a significant part of New Zealand’s
economy and that efficiency gains underpin improvements in other sectors.
“Building research benefits the whole economy,” says John. “If you
improve the built environment, that flows through to all other sectors. A
10% efficiency gain in the building and construction sector equates to a
1% lift in GDP, which is very much worth chasing.”
Dr John Duncan – Levy
Administration Manager
Chris Kane– BRANZ Strategy,
Innovation and Quality Manager
| BRANZ GROUP AnnuAl Review 2009 |
13
ShAriNg
brANZ’S
kNOWlEdgE
brANZ’s research can only be useful if
it is shared.
BRANZ research contributes to understanding how to achieve a high-quality
built environment efficiently and cost-effectively. However, for that knowledge
to have practical impact, it has to reach builders, designers/specifiers and
others throughout the industry in a way that they can readily use.
BRANZ shares information through:
❚ its websites – www.branz.co.nz and sustainable building resource
www.level.org.nz
❚ a wide range of publications including Build magazine, Bulletins,
newsletters and books
❚ its advisory helpline, which provides essential guidance for industry
practitioners and others
❚ seminars on a wide range of building-related subjects including timber,
energy, windows and floors, passive design,and water efficiency.
From the Level Sustainable
Building Series
Build continued to enjoy extremely strong reader support. Of 537 readers
who responded to a 2008 survey, 97% found the magazine essential, very
useful or useful, and more than 70% discussed an article with others,
while significant numbers tried new techniques and/or archived articles
for later use.
Of participants in BRANZ’s seminars during 2008, more than 90% said
their expectations were met and they were happy with the service.
Recent issues of Build
14
| BRANZ GROUP AnnuAl Review 2009 |
brANZ website redeveloped
BRANZ’s website (www.branz.co.nz) was relaunched in 2008 with
enhanced features and a fresh new look.
The redeveloped website provides:
❚ Access to Build magazine online which includes a flipping book of the
latest magazine and the ability to download and purchase current and
past articles
❚ BRANZ Study Reports, Bulletins, and a range of other publications
❚ webstreamed BRANZ seminars
❚ a MyBRANZ feature supporting access to BRANZ online publications
and tools
❚ an enhanced online shop
❚ a range of calculators to assist with the design process, including
• a new Lintels and Beams calculator (replacing a paper-based version)
• an updated Annual Loss Factor tool, which aids compliance with
New Zealand Building Code energy efficiency requirements.
www.branz.co.nz
The website has proved popular, with an average of 14,500 unique visitors
a week since its launch in October 2008.
BRANZ’s Level web-based product continued to be strongly supported,
with 8,500 unique visitors a month. Level was updated with new
information about heat pumps, solar water heating, heat recovery
systems and photovoltaics.
BRANZ also conducted research to assist with development of a renovation
and retrofitting website and accompanying hardcopy publications.
He started out as a carpenter’s apprentice in Lower Hutt 38 years ago,
before leaving to contract and then set up his own business.
For nearly 18 years he worked in a partnership – Jeeves and Edhouse –
maintaining state houses, and building and renovating.
profile:
Tom Edhouse
After almost 4 decades in the building industry, Tom Edhouse has plenty
of knowledge to pass on.
Tom is the new voice behind BRANZ’s 0800 Advisory Services helpline,
which receives more than 5,000 calls a year – with popular topics being
insulation (reflecting new Building Code requirements introduced in
2008), codes and standards, and exterior cladding.
In 1983, he took a year out to teach carpentry at Petone Technical
Institute, then returned to the partnership, spending much of the 1980s
in residential property development.
Tom takes over from Eddie Bruce, who is still there to handle the
overflow of enquiries, contributes to the reviewing process of BRANZ
publications and is actively involved in the review of standards. Most
notably NZS3604:1999 Timber-framed buildings and NZS4246:2006
Energy efficiency – installing insulation in residential buildings.
“It’s like quiz time every day,” he says. “You feel really good that you’re
able to help.”
| BRANZ GROUP AnnuAl Review 2009 |
15
Building
knowledge
about
Appraisals
BRANZ Appraisals provide assurance
for building regulators, specifiers and
builders, as well as helping to bring
products to market.
Bringing products to market
BRANZ has been appraising building systems and products for more than
30 years, and the Appraisal process is widely respected.
Broad understanding of the process also means it can be a highly effective
way to bring a product or system to market.
However, understanding has grown during the year of just how robust that
process is, thanks to a series of presentations by BRANZ Appraisals Project
Manager Russell Clarke.
“On release of each new Appraisal, notification is sent to all building
consent authorities in New Zealand,” says John, “so our customers get
immediate nationwide coverage.”
Since early 2008, Russell has spoken with hundreds of staff at more than
30 local authority councils, explaining how the Appraisal process works, how
to read an Appraisal to ensure a product or system
is used as intended and how Appraisals can help
councils to make better decisions and manage risk.
BRANZ Appraisal forms one step on a ‘staircase’ of assurance for building
consent officials.
“Building officials have a very tough job,” says
BRANZ Appraisals Manager John Parr.
Russell adds that councils appreciate the Appraisal as a way of managing
the risk when accepting products they may be unfamiliar with.
“An Appraisal is… a very strong means of demonstrating fitness for purpose.” –
Appraisals Manager John Parr
“They make very serious decisions and have a
statutory obligation to make those decisions on reasonable grounds.
“An Appraisal is one proven and accepted method they can use to help
that. It’s a thorough and detailed rigorous technical opinion, a very strong
means of demonstrating product fitness for purpose.”
As BRANZ Chief Executive Pieter Burghout explains, the first rung
of that staircase is a manufacturer’s own product information. The
second is testing, the third a rigorous appraisal process and the final
step is the Department of Building and Housing’s CodeMark product
certification scheme, which is “effectively a government guarantee”.
Pieter says that Russell’s presentations are building understanding of how
Appraisals fit into the overall Code compliance picture.
Feedback has been positive. As one building official noted: “It’s good to
know that we are clear about the Appraisal process.”
16
| BRANZ GROUP Annual Review 2009 |
John Parr – Appraisals Manager
Russell Clarke – Appraisals Project
Manager
What is an Appraisal?
A BRANZ Appraisal is a detailed, independent opinion on the fitness
for purpose of a building product or system and its compliance
with the performance requirements of the New Zealand Building
Code and occasionally, the Building Code of Australia.
The Appraisal process begins with development of testing criteria
based on Code requirements and user expectations. Expert
technical opinions, product technical literature, the results of
testing and inspections, an assessment of manufacturing quality
control processes and all other information are then measured
and verified against these criteria.
After a BRANZ Appraisal is issued, BRANZ continues to monitor
the product or system through a validity programme.
Currently, just over 200 products are BRANZ Appraised.
Product
Product
App ai al No 238 [2008]
BRANZ Appra sa s
T chni al Ass ssmen s f produ ts
f r bui d ng nd c nst uc ion
BRANZ
APPRAISAL
No. 238 2008)
Scope
21
ink B t s has b en app a sed as a he ma i su at on mat r al or wa s c i i gs
oo s a d u der flo rs of b i d ngs wi h n he f l owi g cop :
• ramed or art ramed d m st c and comme c al bu l in s w ere he i su at on r m ins
d y ur ng i s se v cea le i e
22
ink Ba ts mu t be n ta l d n acco da ce w th he man fa tu er s Te hn cal
i er tu e to m et t e ta ed th rmal p r orman e a ing of he in u at on S e ara ra h
61
T is App a sal ep ac s Appr i al No
238 2004) i sued 27 Augu t 2004
PINk® BATTS®
gLASSwooL
INSuLATIoN
N
www
C
0 90
0
A pra sal No 461 [2005]
BRANZ App ai als
BRANZ Appr is ls
echn cal A ses me ts of p oduc s
or bu ld ng and cons ru t on
echn cal A ses men s of pr ducts
or bu ld ng and cons ru t on
BRANZ
APPRAISAL
No. 294 2009)
W nstone Wa lbo rds Ltd
P O Box 12 256
Penr se
Auck and 1642
Bu ld ng Regulations
31
n he op n on of BRANZ P nk B t s if de ig ed sed i st l ed a d
ma nt in d n acc rda ce w h he st temen s and con i i ns of t is App a sal wi l meet
r con r bute o me t ng the ol ow ng ro is ons o the NZBC:
C au e B2 DURABIL TY: Pe f rman e B2 3 1(a) ot l ss t an 50 ea s nd B2 3 1(b 15
ea s ink B t s wi l meet his equ em nt See P rag aph 8 1
C au e E3 INTERNAL MO STURE: Pe f rmance E3 3 1 P nk Bat s wi l c nt i ute to
me t ng th s re ui ement ee Par gr phs 12 1 12 2
C au e F2 HAZARDOUS BUILD NG MATERIAL : Pe fo m nce F2 3 1 P nk Ba ts
me ts t is equ reme t and wi l not re ent a hea h h za d o peop e
C au e H1 ENERGY EFIC ENCY: Pe f rmance H1 3 1 a) and H1 3 2 E Pink Bat s wi l
on r bute o me t ng th se r qui emen s See Pa ag aphs 13 1 13 8
32
his s an ppr is l of an Acc pt ble So u ion n e ms of N w Zea and Bu ding
C de C mp ance Pink Ba ts he m l re is an e R V lu ) as b en et rmi ed by
A /NZS 4859 1 wh ch is an a cep ab e me hod
e de s a e ad i ed to he k the a i i y of h s A pr i al y re e ing o he Va d App a s ls s i g n t e RANZ we s te or by on a t ng BR NZ
Ap ra sal No 605 [2008]
BRANZ A pra sa s
T l 09 633 0100
Fax 09 633 0101
Help ine Tel 0800 100 442
He pl ne Fax 0800 229 222
Web www g b co nz
Email in o@g b o nz
BRAN Limited
P iva e Bag 50 908
Po i ua City
ew Zealand
Tel +64 4 237 1 70
Fax 64 4 37 1 71
www b anz co nz
BRANZ
APPRAISAL
CERTIFICATE
No. 461 (2005)
BRANZ
APPRAISAL
No. 605 (2008)
Ame ded 15 May 2008
Amen ed 19 De ember 2008
PRoTECTo wRAP
AFm®-wm wET AREA
mEmBRANE
GIB® EZyBRACE™
SySTEmS
New Zealand Bu ld ng Code (NZBC)
N w
App ais l No 294 2009]
Mar hall Water roofing
NZ Aus L d
P O Box 9411
G eer on
Taur nga
Tel 07 543 0948
Fax 07 541 1029
Scope
21
G B E yBr ce Sy tems and he G B E yBr ce FP of ware have been
a pra s d or t e d s gn and se of i te or wall nd e l ng bra ing s s ems n bui d ngs
w th n the s ope l mi a io s of NZS 3604
Build ng Regulat ons
New Zealand Bu lding Code (NZBC)
31
n he o in on of BR NZ he G B E yBr ce Sy tems f es gned u ed
ns a led and ma nt in d n ac ord nce w th the st temen s a d co di i ns of his
C rt fic te w l m et the ol ow ng pro i io s f the NZBC:
C au e B1 STRUCTURE: Pe f rmance B1 3 1 B1 3 2 nd B1 3 4 G B Ez Bra e
S st ms meet he re ui emen s or oads a i ing rom e f wei ht ar hqua e wind and
mpact i e B1 3 3 ( ) f) (h) nd ( )] See Pa ag aphs 8 1 8 11
C au e B2 DURABIL TY: P r orman e B2 3 1 a) n t le s th n 50 ye rs GIB Ez Bra e
S st ms me t th s re ui ement See Pa ag aphs 9 1 9 4
C au e C3 SPREAD OF F RE: P r orman e C3 3 1 C3 3 2 and C3 3 5 G B Brac l ne
mee s th se r qu remen s by pr vi ing fi e and smoke p ot ct on See P ra raph 11 1
C au e F2 HAZARDOUS BU LDING M TERIALS: er o ma ce F2 3 1 GIB Ez Bra e
S st ms me t th s re ui ement a d w l not p ese t a ea th haz rd to p op e
N
N w
www
32
T is s n A pra s l of an Al e nat ve So u ion n e ms of New Zea and Bu l ing
C de ompl an e
33
G B EzyB ace Sys ems a e or u e o sa i fy t e ra ing dema d equ r m nts
o Sec i n 5 of NZS 3604 w ich s a NZBC Comp i nce Document
ea e s a e dv ed to he k the a i i y of h s Ap r i al y e e r ng o t e Va d pp a sa s i t ng n the RANZ web te or by on a t ng BR NZ
R
C
0 90
0
Product
Product
11
P ot cto Wrap AFM WM memb ane is manu ac ur d rom st re e uta ie e
s y ene (SBS mo ifi d spha t w th a lam na ed ab c op
12
P ot cto W ap A M WM memb ane is an nt rn l wet a ea wa e pr ofing
membra e or use un er ce amic i es It s al o u ed as a fl x ble ayer o ed ce he
ik l hood of les ra ki g ue o bu ld ng moveme t
13
The membra e s se f adh si e n he nde s de A re ea e lm p o ec s he
adh s ve su fa e and s remo ed ur ng i st l a ion
Te hni al Ass ssments of rodu ts
f r ui d ng a d c nst uc ion
T is App a sal ep ac s BRANZ
App a sal No 94 2006) ssu d
22 N vember 2006
Amen ed 4 No em er 2008
asm n In ula ion New Zealand
Ld
PO Box 12 069
Pen ose
Au kland
T l 09 579 2139
Fax 09 579 8806
F eeph 0800 802 287
Web www p nkba ts co nz
Product
11
G B EzyB ace Sys ems are a ra ge of wal and e l ng br ci g ys ems ased
on he se of GIB Bra e ine GIB S anda d la t rbo rd and ot er GIB p as e boa ds
G B zyB ace
ys ems re us d o es st e r hqua e nd w nd o ds n imber r me
b i d ngs de ig ed nd ons r ct d n acc rda ce w h NZS 3604 The GIB Ez Bra e
FP s f w re p ov des an e ec ro ic means o ca cu at ng b ac ng demand and r s st nce
11
ink Ba ts gl sswo l s a r nge of re in bon ed fi ro s g a swool nsu a i n
sed as th rmal ns la ng ma e ia in wa ls roo s oo s nd e l ngs of ui d ngs
12
ink Ba ts Bui d ng In ul t on B an et a d Co yflo r Gla swool nsu a i n
p od cts a e re cut o u t a w de an e of he mal i su at on r qu remen s and f aming
et ou s
11
The Sto tuc o P as er Ca i y S s em is a av ty b sed mo ol hic p as er wall
c add ng t is de i ned to be us d as an e te nal wa l c ad ing s s em or r si en ial nd
l ght omme c al ype bu l in s w ere dome t c con t uc ion echn qu s re us d
12
The sy tem ons s s f a s a nl ss st el l th fixed ov r mb r bat ens o orm
the c vi y he oa ing s s em co s sts of n a pro ima e 18 mm hi k p ly t re e b ad
sa ur ted p l m r mo ifi d cement b sed pl s er app i d o he a h n a pro ima e
2 5 mm th ck co t of m sh re n or ed pl st r a d an ap ro ima e 1 3 mm h ck coat of
fin sh pl st r T e p a ter s th n fi i hed w h a 100% a ry c xt r or pa nt s s em he
top c at p as ers an e ni hed to g ve d f e ent ex ure ap ea ances
13
The sy tem nc rp ra es a r m ry and sec nda y mea s f w ath r re i tan e
(fi st a d eco d ne of de en e) ag in t wat r pene r t on by sep ra ng the c add ng rom
the e te nal w ll r m ng wi h a n m nal 20 mm wi e av ty
Scope
JeNk N A-LIgN®
RuSTICATed
WeATheRBoARd
dIReCT FIxed
CLAddINg SoLuTIoN
ca r edout nlybyMa sha lWat rp oofi gNZ AusL dl cen edapp i at rs No e: An a te na i e nti ra tu e memb ane is a a lab e for se when a w te pr ofing
membra e s ot req i ed P ot cto Wrap AFM s im lar o A M WM memb ane
ex ept w tho t an ve lap s r p for wa e pro fing Th s memb ane is o ts de the cope
of t e NZBC a d t is Cer fica e For ur her in o ma on p ea e efer o Ma sha l
W te pr ofing NZ Aus Ltd
BR
Z
BR
Z
S oanz L m ted
72 Abel Sm th St eet
Wel ngton
el 04 801 4743
Fax 04 384 9828
Web www s o o nz
RANZ Limi ed
P iv te Bag 50 908
Po i ua City
New Zealand
Tel +64 4 237 1 0
Fax +64 4 237 171
www b an co nz
BRANZ Appra sa s
T chn cal As essmen s f prod cts
or bui d ng nd ons ruc ion
BRANZ
APPRAISAL
No. 637 (2009)
SToSTuCCo
PLASTeR CAvITy
SySTem
21
P ot cto W ap AFM WM memb ane ha been a pra s d o use as a wa e pr ofing
membra e or n ern l wet a eas of b i d ngs w t in t e o l w ng s ope:
• on oor sub t a es of con re e flo r ng ra e p r ic e boa d p ywood c m re sed
fibre c m nt she t nd fi re cement heet i e nde lay and on wa l su st a es of
con re e c nc ete mas nry w t ar a bre c m nt sh et l n ng sy tems and wet a ea
pl st rb ard in ng s st m ; and
• w enpro e ted romul ra v o et UV)exp su e ndphys c ldamagebyc ram ct l s;
and
• w erefl orsa ede ig edandcon t uc edsuch hatd flec i nsdonote ce d1 360
of t e pan
22
The use of Pr te to W ap A M WM m mb ane on onc e e s abs whe e a
hy ro ta ic or apou pre su e is p ese t is o ts de t e cope of h s Cer i ca e
23
Moveme t and con r l j in s in he ubs r te must be c r i d hr ugh to t e le
fin sh he es gn and con t uc ion of he m vement nd on rol o nts s spe ific o he
bu l ing a d he e ore s the esp ns b l ty o the bu di g es gner nd bu ld ng co t ac or
and s ut ide he sco e f th s Ce t fica e
24
T l ng fin sh s are ou s de the cope of h s er i ca e
25
ns al a i n f the P o ec o Wr p A M WM membra e nd acc sso es m st be
App ai al No 637 [2009]
11
The Jen in A gn Rus i at d Wea he boa d D ect F xed C add ng So ut on s n
x ern l w ll c ad ing s st m for es de t al and l ght c mme c al t pe ui d ngs whe e
omes ic co st uc on e hni ues a e u ed
12
The s st m ons s s of hor z nta y fix d Jen in A l gn ru t ca ed imber
w ath rb ards fla hin s and acc sso es
13
The sy tem is ap l ed d re t to t e xt rn l wal f aming o er a bu ld ng wr p a d
s fin sh d w th two c ats of 00% pr m um cr l c hou e p int
Jen in T mb r Lim ted
PO Box 21702
H nde son
Au kl nd
e : 09 836 450
ax: 09 836 8453
Scope
21
The StoS uc o P as er Cav y Sy t m has een ppr i ed as an ex er al wall
c add ng sy tem for ui d ngs wi h n he f l ow ng cop :
• he sc pe l m at ons of N BC Ac ep ab e olu on E2/AS1 Par gr ph 1 1; and
• ons ru t d w th t mber ram ng comp y ng w th he N BC; and
• w th a i k co e of 0 20 ca cu a ed n acc rda ce w th NZBC A cep ab e S lu on
E2 AS1 ab e 2 and
• i ua ed in NZS 3604 B i d ng W nd Zones up o and nc ud ng Ve y High
22
The S oSt cco P as er Ca i y Sys em as a so been a pra s d or we the t gh ne s
and t uc ur l w nd lo di g when us d on bu ld ngs s bj ct to spe i c d si n up to a
di er nt al d s gn l ima e l mit ta e (ULS) w nd pre su e of 2500 Pa
23
The St Stu co Pla t r C v ty Sy tem mu t on y be ns a led on ve t cal ur ac s
(e cept or ops of p ra ets s l s and ba us ra es wh ch m st ha e a m nimum 10 l pe
and be wat rp oo ed in ac ord nce wi h the T chn cal i er tu e)
24
The sy tem is ap ra sed or use w th a um n um w ndow and door o nery hat s
in ta ed wi h er cal ambs and ho i on al hea s and s l s It s exp ct d hat he jo ne y
wi l m et the re ui ements of NZS 4211 or the re e ant Bui d ng Wi d Zo e or be
spe ifi al y des gn d or use n pec fica y es gned bu l ings )
25
In t l at on of om onen s and acc ss r es sup l ed by Sto nz Ltd and ap ro ed
app i at rs must be c r ied o t on y y S oa z td app ov d ppl c to s
ade s a e ad sed o ch ck he va d ty f t is pp a sa by r f r ng to he V l d Ap ra a s l s ng on he BRANZ w bs te o by co t c i g RANZ
Scope
BRANZ Limit d
P iva e Bag 50 908
Po i ua City
New Zealand
Tel +64 4 237 170
Fax +64 4 237 1 71
www b anz o z
21
The enk n A i n R st c ted Weat er oard D re t Fi ed lad ing So u i n has
een app a sed as an ex e nal ho zon a ly fi ed w ll la ding ol t on for b i d ngs wi h n
he f l ow ng cop :
• he sco e m t t ons of NZBC Acc pt ble So u i n E2 AS1 ara ra h 1 1; and
• c ns ru ted wi h t mber ram ng ompl ing w th t e NZBC; nd
• w th a sk sco e of 0 6 a cu at d n acco dan e w th NZBC Acc pta le So u ion E2/
AS1 ab e ; and
• s uat d n NZS 3 04 Bu ding Wi d Z nes up to and in l ding Ve y H gh
22
The enk n A l gn Rus ca ed Wea he boa d D r ct Fi ed la ding So u ion is
ppr i ed or use w th al m n um and t mber win ow and do r o ne y hat s ns a l d
w th v r ic l jambs and ho zon al he ds and si s The App a sal of he Jenk n A ign
R st ca ed W ath rb ard D rec Fi ed Cla ding S lu i n e ies on he j ine y m et ng t e
equ r m nts of NZS 4211 or t e el vant Bu ding Wind Zone and t e imber o nery
rofi es mee ing he equ r m nts of NZS 3610 )
e de s a e ad i ed o he k t e va d ty o th s A pr i al y r f r i g to he Va d App a s ls s i g on t e BRANZ we s te or y co ta t ng B ANZ
Recent Appraisals
| BRANZ GROUP AnnuAl Review 2009 |
17
Will briCk
vENEEr STANd
up TO ThE big
ONE?
brANZ research on brick veneer is
instilling confidence in New Zealand’s
most frequently used new home
cladding.
A series of Levy-funded BRANZ research projects on the bracing strength
of brick veneer cladding may set the scene for greater design flexibility
and increased confidence and potentially even reduced national
earthquake liabilities.
The BRANZ project team led by Senior Structural Engineer Stuart Thurston,
has built single-storey and 2-storey brick veneer-clad structures and shaken
them to simulate extreme earthquakes that were well beyond what a house
would be designed for. Even then, the cladding remained largely intact.
greater design flexibility
The findings have implications for New Zealand Standard 3604 Timberframed buildings. BRANZ has recommended that the standard provide
for 2-storey brick veneer cladding and allow brick veneer to take its own
bracing load.
Changes in the standard would have implications for home design,
potentially extending usage of a cladding already specified for more than
40% of new homes, as well as providing greater design flexibility, for
example, by allowing for larger windows.
The research also has implications for New Zealand’s multi-billion dollar
earthquake insurance liability, says BRANZ Principal Structural Engineer
Graeme Beattie.
Although cracking occurred in the mortar joints of the veneer during the
testing, the cracks closed up again when the load was removed, with
minimal repairs required.
On both single-storey and 2-storey buildings, not only did the brick veneer
survive, it also took a significant part of the bracing load – reversing the
common view that shear loadings from brick veneer will transfer to the
house framing.
“We shook this backwards and forwards a huge amount, and things all
stayed together. It didn’t collapse,” says Stuart. “After we put on design
earthquake displacements, it cracked all right when you put the load on,
but when you took the load off, it closed again.”
Graeme Beattie – Principal
Structural Engineer
18
| BRANZ GROUP AnnuAl Review 2009 |
Dr Stuart Thurston – Senior
Structural Engineer
“This work will provide the ability
to extend brick veneer to 2-storey
buildings without specific design
and it will also provide more
confidence,” says BRANZ Fire
and Structural Engineering
Services Manager Greg Baker.
Greg Baker – Fire and Structural
Engineering Services Manager
“There was a feeling that brick
veneer didn’t perform very well
in earthquakes. This is going to
allay those fears and show how
you can use brick veneer and
have it perform in a safe and
appropriate way. In basic terms,
it’s not going to fall on people.”
General Manager Science and Engineering Services Paul Shortis says it
is also an example of research contributing to good building performance
without increasing the budget.
“There is a perception that the work we do is very much about improving
by adding on, making things more robust. In reality, a lot of it is about
making things simpler.”
brANZ’s contribution to
building standards
The brick veneer research is one of many aspects of BRANZ’s input
nto a wider review being undertaken by Standards NZ of NZS 3604,
New Zealand’s most commonly used building standard, which got under
way in December 2008.
The decade-old current version of the standard is used in 90% of
New Zealand timber-framed buildings and requires an update to bring
it into line with developments in material use, earthquake and snow
loadings, adoption of Acceptable Solution E2/AS1 (weathertightness) and
a range of other changes.
BRANZ Chief Executive Pieter Burghout sits on a New Zealand Standard
leadership group overseeing the revision. Also BRANZ staff, having
completed a 2-year technical review, provide specialist input.
“The review is picking up input from all over BRANZ – durability, structure,
sustainability,” says Strategy, Innovation and Quality Manager Chris Kane.
“It’s a collecting and utilisation point for a lot of BRANZ research.”
“ research can explain how to best construct
something, and also how to most cost effectively
do it.” – Strategy, innovation and quality
manager Chris kane
| BRANZ GROUP AnnuAl Review 2009 |
19
This is one of many examples
of BRANZ research that
directly supports codes and
standards, and contributes to
both performance and costeffectiveness of the building
process.
Mark Jones – Building Performance
Manager
Another area is weathertightness,
where, during 2008 BRANZ
completed the experimental
phase of a 6-year study aimed
at developing cost-effective
methods of managing moisture
in timber-framed walls.
In all, BRANZ measured moisture recovery rates in 24 walls in a specially
constructued ‘hut’ at its Judgeford site to determine the most effective
materials and cavity designs. Modelling is now being carried out to make
the results relevant to other parts of New Zealand.
The results showed that free draining walls recovered more quickly from
leaks than those with absorbent claddings and also emphasised the role
of cavities in preventing water from bridging across and entering framing
and insulation.
“Weathertightness is an example of the importance of research-based
knowledge,” says BRANZ Building Performance Manager Mark Jones.
BRANZ is also developing sensors to provide an early warning of moisture
in wall cavities, conducting research on drainage planes and starting work
on a major study of ventilation and indoor air quality.
This work is contributing to evolutionary change of Building Code clauses
E2 and E3 (external and internal moisture). Altogether, BRANZ staff
contributed to the development of a number of Building Code changes
during the year.
“My job is doing the thermal testing of insulation products,” she says,
“measuring thickness, and thermal conductivity and resistance.”
Born and raised in southern Taiwan, she completed a degree
at Tatung University in 2002 and a Master of Engineering at the
University of Queensland in Brisbane in 2004.
She returned to Taiwan for 6 months and worked at a major LCD
manufacturer, before her husband – a Welsh scientist, who she had
met in Brisbane – found a job at BRANZ.
profile:
Sheng-huei huang
Sheng-Huei (known as ‘Huey’ to her workmates) has been at BRANZ
since 2005, working as an insulation technician.
20
| BRANZ GROUP AnnuAl Review 2009 |
While he has since moved on from BRANZ, Sheng-Huei stayed and
moved from part-time to full-time work in 2006.
When she is not working, she and her husband enjoy travel. In
recent years they have been to Wales, Thailand, Australia, Fiji, “and
Taiwan many times”.
imprOviNg
NEW ZEAlANd’S
firE SAfETy
research funded by brANZ inc is
contributing to improvements in the
fire safety of New Zealand buildings.
In September 2008, the Fire Protection Association of New Zealand
released results from a pilot study into passive fire protection in a small
number of New Zealand commercial and institutional buildings. This
project was funded by the Building Research Levy.
Many buildings had issues that required remedial action, the most
common problem being unsealed services penetrations in fire walls and
floors – in some cases, the results of alterations after construction.
“Serious fires are extremely rare, and in many of the buildings, there
are also other systems in place such as sprinklers, detectors, alarms
etc” says Greg Baker, BRANZ’s Fire and Structural Engineering Services
Manager and Chair of the Fire Protection Association’s Passive Fire
Protection Group.
“But if a serious fire did break out, the flaws found in the survey would
have compromised fire safety. What you want to do is contain the fire in
the area in which it breaks out, so people can escape safely. The initial
cost to get it right in the first place is low, but there are potentially high
consequences, if the passive fire protection fails.”
In the view of Fire Protection Association President Kevin Kennedy, the
results emphasised a need for improved understanding of passive fire
protection throughout the industry.
“Passive fire protection is just one set of measures [to protect against fire],
but it is important.”
Since the report was released, the Fire Protection Association, the
Department of Building and Housing and BRANZ have worked together to
inform key industry players of the results and ensure that appropriate action
was taken.
| BRANZ GROUP AnnuAl Review 2009 |
21
The Fire Protection Association is coordinating the development of
guidelines on passive fire design and an industry training programme
for passive fire protection.
From these results the Department of Building and Housing has
also consulted the local authorities who administer building warrants
of fitness.
“Local authorities are telling commercial building owners ‘be careful here
folks’,” says BRANZ Chief Executive Pieter Burghout, “and, the next time a
building comes up for its warrant of fitness, passive fire protection is one
of the things that will need to be checked more carefully.”
“This is one report that has had ripples throughout
the industry, positive ones… knowing that the
buildings actually achieve the passive fire ratings
that they need.”
The passive fire research complements BRANZ’s extensive programme of
fire safety research. During the past year, BRANZ’s contributions included:
❚ guidance to designers on the use of its BRANZFIRE computer program
when predicting the effectiveness of fire in large spaces
❚ a study on the effectiveness of collapsible roof panels to remove heat
and smoke during fires
❚ a study updating Code provisions for safe evacuation in the event of fire
❚ research into the incipient stage of fire growth
❚ measuring radiation in compartment fires
❚ the use of technology to facilitate international research collaboration.
brANZ-funded research provided a wake-up call
on passive fire protection.
He has since completed a Post-graduate Diploma in Building Fire Safety
and Risk Engineering from Victoria University of Technology, Melbourne.
Peter’s working life includes consulting, commercial fire testing, advice
on standards and ‘pure’ research on building fire performance.
profile:
peter Whiting
Peter Whiting gets to light fires for a living.
The former architecture graduate has worked with BRANZ’s fire
research team since 1995.
22
| BRANZ GROUP AnnuAl Review 2009 |
Some of his work in the past year has involved evaluating building
systems for compliance with Australian bush fire regulations.
Peter also conducted ‘hot smoke’ testing of the approximately
400-metre long Johnstone’s Hill highway tunnels, which opened this
year north of Auckland. This involved lighting alcohol fires and using
pyrotechnic smoke to see if the tunnels’ fire safety systems performed
as they were supposed to (and they did).
imprOviNg
NEW ZEAlANd’S
ENErgy
EffiCiENCy
brANZ’s
contribution to
energy efficiency
benefits the
industry,
householders
and the nation.
Generating electricity is expensive
and is becoming more so.
Paul Shortis – General Manager
Science and Engineering Services
BRANZ‘s research is valued by electricity generators and lines companies
making decisions about how to meet the nation’s future energy needs.
It has contributed to the development of policy in fields as diverse as energy,
building regulation and health, including last year’s upgrade to Building Code
clause H1 Energy efficiency and, indirectly, the government’s commitment
this year to fund insulation installations.
“This work really does inform policy,” says BRANZ General Manager
Science and Engineering Services Paul Shortis. “It adds immensely to the
stock of knowledge on building efficiency.”
Electricity use also has environmental implications, ranging from
the landscape impacts of installing
wind turbines to the long-term
impacts of emitting carbon from
coal-fired plants.
For more than a decade, BRANZ has been monitoring New Zealand’s
household energy use, seeking to understand how and when energy
is used, and to provide guidance on how to most cost-effectively make
improvements. This work has revealed that many New Zealand homes get
so cold in winter that occupants’ health may be affected.
It has also uncovered the implications of a national trend towards
installation of heat pumps – likely to result in significant growth in
electricity demand both in summer and winter, despite heat pumps’
energy efficiency.
| BRANZ GROUP AnnuAl Review 2009 |
23
Energy and water use in
non-residential buildings
Beginning in 2008, BRANZ has also sought to transfer its skills in
understanding household energy use to non-residential buildings.
The Building Energy End-use Survey (BEES) has received government
research funding as well as a contribution from the Levy. It will run over
6 years to 2013 and seeks to understand energy and water use in a range
of non-residential buildings including offices, shop and educational and
health-related buildings.
The results will help to support the development of a non-residential
building sector that is more energy and water efficient and supports
greater comfort and productivity for building occupants.
This sector spends about $900 million a year on energy and is responsible
for 4% of New Zealand’s greenhouse gas emissions, so even small
improvements in efficiency could be significant.
informing decisions about
efficiency
Research on energy use in existing buildings is one of many ways
in which BRANZ aids decisions about efficient resource use in
New Zealand’s built environment.
During the year, BRANZ has also conducted research projects on:
❚ the cost-effectiveness of retrofitting existing buildings to enhance energy
efficiency – this research found significant benefits in insulation and
in low-cost options such as installing low-flow shower heads and water
cylinder wraps, and more modest benefits in other options such as solar
water heating and double glazing
❚ Beacon Pathway Ltd’s retrofit of 10 1970s homes from Papakowhai,
Porirua – this research found energy and water efficiency improvements
from retrofitting and also found that insulation alone is not enough to
achieve Beacon’s ‘high standard of sustainability’ benchmark
❚ the installed performance of ceiling insulation – this research found that
significant losses can occur if insulation is not installed correctly, and a
similar project on wall insulation is under way
❚ the performance of solar water heaters in practice
❚ active and passive ventilation.
BRANZ’s Appraisal and testing programmes also contribute by providing
assurance about the effectiveness of insulation products and systems.
Knowledge about efficiency has been transferred through publications
such as BRANZ Bulletins on heat recovery ventilation systems and glazing
retrofits for thermal improvement and through the Level sustainable
building website (www.level.org.nz) aswell as a range of books.
24
| BRANZ GROUP AnnuAl Review 2009 |
improving water efficiency
While many New Zealanders see water as a free resource, its supply
depends on costly infrastructure such as reservoirs, pumping stations
and pipe networks.
In October 2008, BRANZ completed a study of water use in Auckland
homes, finding that each household used 179 litres per person per day,
with showers and clothes washing the highest uses.
Understanding water use provides guidance on how to most cost-effectively
improve water efficiency. For example, the study found that, in general,
taps were already efficient, and there would be little benefit from installing
flow restrictors. The research was funded by Auckland water companies
and WaterCare Services Ltd.
brANZ wins eco-gold
After a 60% reduction in water use over 2 years and a 10% reduction in
electricity use, BRANZ joined an exclusive group of New Zealand companies
to achieve a prestigious Gold award from the Enviro-Mark programme run
through Landcare Research.
Only 38 companies have achieved the Gold standard in New Zealand’s
original and leading environmental management certification programme.
BRANZ also reduced its fuel use and changed the paper it used for
photocopying and some publications.
BRANZ is now aiming to achieve
Diamond status. “There is
still a lot of work to do,” says
BRANZ Quality and Environmental Manager Don Richards.
“We are on the right track
and are acting responsibly to
ensure that our impact on the
environment is minimised.”
Don Richards – Quality and
Environmental Manager
Household Energy End-use Project (HEEP), BRANZ’s major study of
energy use in New Zealand households.
HEEP also formed the basis of her Victoria University Master of
Building Science degree.
profile:
lisa french
BRANZ Sustainability scientist Lisa French made national headlines
in 2008 with research on the implications of New Zealand’s boom in
heat pump usage.
Lisa joined BRANZ in 2002, initially working part-time as she completed
her degree in building science. Her first role was to contribute to the
In 2007 and 2008, she worked on the heat pump project and Lisa is
now working on New Zealand’s changing energy uses project, an update
of HEEP data to reflect the increased use of heat pumps, wide-screen
TVs and other appliances in New Zealand homes, and on a Beacon
Pathway Ltd study on the effectiveness of active ventilation systems.
When she is not helping New Zealanders to understand their energy
use, Lisa is likely to be found renovating the former state house she
shares with her partner.
While insulation was the top priority and she leans towards choosing
a pellet burner for heating, she doesn’t rule out a heat pump. “I
wouldn’t expect a heat pump to save us money, but it could make
the house warmer.”
Originally from Chester in England’s northwest, Greg studied
engineering at Sheffield University before landing a job at Rolls Royce’s
Bristol plant, working as a stress analyst.
He stayed for 5 years before he and his girlfriend (now wife) decided
in 2006 they wanted a change of scene and moved to New Zealand –
settling in Paraparaumu to be near her work.
profile:
greg Overton
Greg Overton traded a career working on the development of jet aircraft
engines for a move to New Zealand.
Greg joined BRANZ as a fire engineer, but moved 2 years ago into
weathertightness where he is responsible for two projects: one
measuring the effectiveness of drainage planes at managing moisture
in timber-framed walls and the other investigating the behaviour of
moisture in parapet walls.
| BRANZ GROUP AnnuAl Review 2009 |
25
CONTrACTEd
rESEArCh
brANZ inc uses building research levy
funding to support a range of studies
by external organisations.
During the year to 31 March 2009:
❚ Opus Consulting was contracted to study the impact of wind design on
tall buildings
❚ Constructing Excellence Ltd was contracted to produce a ‘pathfinder’
series of case studies on innovation in New Zealand building practice
❚ The Centre for Advanced Engineering was contracted to analyse the
construction industry boom-bust cycle.
Research projects were completed on population growth and housing
needs, performance of older houses and their repair and maintenance
practices and on subcontractors’ understanding of the Construction
Contracts Act.
Scholarships supported post-graduate students researching the traffic
implications of urban densification, a liveability index for apartments,
the economics of secondary glazing, sound reduction in light-weight
building construction, production engineering of solar panels integrated
into roofing, and land use and building regulation to protect people and
property from flooding and other hazards.
Levy funding contributed to the Australasian Corrosion Association’s
Conference in Wellington in November 2008, the i-REC Conference in
Christchurch in April 2008 and to presentations by international experts
on collaborative working arrangements in the construction industry and
on best practice in ‘lean construction’.
26
| BRANZ GROUP AnnuAl Review 2009 |
fiNANCiAl
STATEmENTS
introduction to accounts
The following pages contain the audited financial statements for the year ended 31 March 2009.
Graham Coe
Chairman
Peter Fehl
Deputy Chairman
| BRANZ GROUP AnnuAl Review 2009 |
27
Income statement
Building Research Association of New Zealand Inc
For the year ended 31 March 2009
Parent
Group
2008
2009
$
$
Note
2009
2008
$
$
Operating INCOME
11,859,328
9,832,097
Building Research Levy
9,832,097
11,859,328
59,140
6,371
Fees
9,919,925
9,803,261
1,382,000
1,456,000
Rent
0
0
13,300,468
11,294,468
19,752,022
21,662,589
1,273,919
1,002,281
1,273,919
1,002,281
21,025,941
22,664,870
8,485,004
9,694,673
Other income
922,027
1,094,429
Interest received
922,027
1,094,429
14,222,495
12,388,897
1,332,651
472,752
Personnel costs
545,467
559,691
Depreciation
6
559,691
545,467
487,518
459,335
Amortisation
5
459,335
487,518
2,033
206,368
Loss on sale of fixed assets
206,368
2,033
6,906,401
6,489,000
Contracts – BRANZ Limited
0
0
Total income
Expenditure
187,348
558,193
1,697,093
1,215,892
217,250
150,000
250,000
0
Contract research
Other operating costs
Beacon Pathway Limited funding
Greenbuild Limited funding
0
75,000
11,625,761
10,186,231
Structural Timber Innovation Company Limited funding
2,596,734
2,202,666
1,024,214
0
Reversal of impairment loss
0
0
Share of surplus of equity accounted investment
3,620,948
2,202,666
0
0
3,620,948
2,202,666
Total expenditure
Surplus for the year
150,000
217,250
0
250,000
75,000
0
18,942,287
3,665,977
3,722,583
0
0
62,726
8,689
3,728,703
3,731,272
(175,719)
77,820
3,552,984
3,809,092
Surplus before income tax
4
187,347
7,557,999
17,359,964
Operating surplus for the year
Income tax (expense)/credit
619,250
6,805,316
This summary financial report has been extracted from the full financial report. The full financial report, dated 17 June 2009, is available by request from the BRANZ Levy Administration
Manager (levyadministration@branz.co.nz).
28
| BRANZ GROUP Annual Review 2009 |
statement of changes in equity
Building Research Association of New Zealand Inc
For the year ended 31 March 2009
Parent
Group
2008
2009
$
$
17,275,184
20,896,132
3,620,948
2,202,666
20,896,132
23,098,798
Note
Total equity balance opening
Total recognised income and expense
Total equity balance closing
2009
2008
$
$
21,346,338
17,537,246
3,552,984
3,809,092
24,899,322
21,346,338
This summary financial report has been extracted from the full financial report. The full financial report, dated 17 June 2009, is available by request from the BRANZ Levy Administration
Manager (levyadministration@branz.co.nz).
| BRANZ GROUP Annual Review 2009 |
29
bAlANCE ShEET
building research Association of New Zealand inc
As at 31 March 2009
PARENT
2008
$
GROUP
2009
$
Note
2009
$
2008
$
0
3,415,688
275,598
376,104
0
3,228,675
7,296,065
144,268
3,521,288
549,360
313,378
0
0
4,528,294
ASSETS
Non-current assets
Deferred tax
Property, plant and equipment
Intangible assets
Investment in equity accounted investees
Investment in subsidiaries
Term deposits
Total non current assets
0
3,521,288
549,360
42,500
4,000,000
0
8,113,148
0
3,415,688
275,598
42,500
4,000,000
2,228,680
9,962,466
0
76,789
1,184,512
12,642,563
0
0
13,903,864
0
199,263
1,477,319
12,391,157
254,965
0
14,322,704
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Term deposits
Prepaid expenses
Work in progress
Total current assets
355,617
1,823,334
4,610,326
12,391,157
515,046
624,205
20,319,685
436,624
1,567,690
3,192,574
12,642,563
659,700
660,254
19,159,405
22,017,012
24,285,170
Total assets
27,615,750
23,687,699
20,896,132
20,896,132
23,098,798
23,098,798
24,899,322
24,899,322
21,346,338
21,346,338
120,818
120,818
90,241
90,241
6
5
9
EqUITy
Retained earnings
Total equity
LIABILITIES
Non-current liabilities
Employee benefits
Total non-current liabilities
11,063
11,063
0
0
1,041,325
68,492
0
1,109,817
1,164,904
21,468
0
1,186,372
Current liabilities
Trade and other payables
Employee benefits
Deferred revenue
Total current liabilities
1,769,524
378,572
447,514
2,595,610
1,410,405
387,622
453,093
2,251,120
1,120,880
1,186,372
Total liabilities
2,716,428
2,341,361
22,017,012
24,285,170
27,615,750
23,687,699
Total equity and liabilities
For and on behalf of the Board of Directors
Date: 3 July 2009
Graham Coe
Chairman
Peter Fehl
Deputy Chairman
This summary financial report has been extracted from the full financial report. The full financial report, dated 17 June 2009, is available by request from the BRAnZ levy Administration
Manager (levyadministration@branz.co.nz).
30
| BRANZ GROUP AnnuAl Review 2009 |
statement of cash flows
Building Research Association of New Zealand Inc
For the year ended 31 March 2009
Parent
Group
2008
2009
$
$
Note
2009
2008
$
$
Cash flows from operating activities
11,859,328
9,832,097
Levies
9,832,097
11,859,328
1,413,064
1,429,881
Cash receipts from customers
9,776,575
9,803,261
(10,447,645)
(9,150,310)
(15,518,742)
(18,458,487)
934,714
1,004,445
1,180,961
1,002,281
0
0
3,759,461
3,116,113
(1,200,001)
0
(1,748,379)
(1,977,274)
(321,497)
(846,032)
28,125
0
(3,241,752)
(2,823,306)
(18,456)
0
(18,456)
0
499,253
292,807
685,259
1,184,512
1,184,512
1,477,319
Cash paid to suppliers and employees
Interest received
Income tax paid
(29,838)
(66,015)
5,241,053
4,140,368
0
0
(2,977,269)
(1,748,379)
(846,032)
(321,495)
0
28,125
(3,823,301)
(2,041,749)
Repayment of intercompany loans
0
0
Net cash from/(used in) financing activities
0
0
Increase in cash and cash equivalents
1,417,752
2,098,619
Cash and cash equivalents at 1 April
3,192,574
1,093,955
4,610,326
3,192,574
Net cash from operating activities
Cash flows from investing activities
Investments – BRANZ Limited
Cash invested in term deposits
Purchase of fixed assets
(Repayment)/payment between associates
Net cash from/(used in) investing activities
Cash flows from financing activities
Cash and cash equivalents at 31 March
This summary financial report has been extracted from the full financial report. The full financial report, dated 17 June 2009, is available by request from the BRANZ Levy Administration
Manager (levyadministration@branz.co.nz).
| BRANZ GROUP Annual Review 2009 |
31
Notes to the Financial Statements
Building Research Association of New Zealand Inc.
For the year ended 31 March 2009
1. REPORTING ENTITY
Buiilding Research Association of New Zealand Inc (“the Parent” or “Building Research Association”) is an incorporated society registered under the
Incorporated Societies Act 1908.
Financial statements for the Parent and consolidated financial statements are presented. The consolidated financial statements of Building Research
Association of New Zealand Inc as at and for the year ended 31 March 2009 comprise the Parent, its subsidiaries (together referred to as the “Group”),
and the Group’s interest in associations and jointly controlled entities.
Building Research Association of New Zealand Inc’s primary purpose is promoting scientific or industrial research.
The Group is primarily domiciled in New Zealand and operates from Wellington, with a satellite operation in Hamilton.
The full financial statements were authorised for issue by the Board of Directors on 17 June 2009.
2.BASIS OF PREPARATION
Statement of compliance
The full financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with
the New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable financial reporting standards as appropriate
to public benefit entities.
These summary financial statements are prepared in accordance with FRS 43. Their purpose is to provide an overview and as such do not provide
an understanding as complete as the full financial statements. The full financial statements are available on request by emailing the BRANZ Levy
Administration Manager on levyadministration@branz.co.nz.
The Group qualifies for Public Benefit Entity reporting exemptions as its primary objective is to provide services for the community or social benefit and
the entity has been established with a view to supporting that primary objective rather than financial return. All appropriate Public Benefit Entity reporting
exemptions have been adopted.
Basis of measurement
The financial statements are prepared on the historical costs basis. The accounts are prepared on a going concern basis. Presentation currency
These financial statements are presented in New Zealand dollars ($). This is the functional currency of the Group.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Significant areas of estimation uncertainty and critical judgement in applying accounting policies that have the most significant effect on the amount recognised in
the financial statements relate to property, plant and equipment, intangible assets, trade and other receivables, inventory impairment, provisions and income tax.
3. BASIS OF CONSOLIDATION
(1) Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity
so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the control ceases.
32
| BRANZ GROUP Annual Review 2009 |
(2) Associates (equity accounted investees)
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Associates are
accounted for using the equity method.
(3) Transactions eliminated on consolidation
Intra-group balances and any unrealised income and expenses arising from intra-group transactions are eliminated in preparing the consolidated
financial statements. Unrealised gains rising from transactions with equity accounted investees are eliminated against the investment to the extent
of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
4. INCOME TAX EXPENSE
Parent
GROUP
2008
2009
2009
2008
$
$
$
$
29,838
66,015
29,838
66,015
Current tax expense
0
0
0
0
Current period
Deferred tax expense
0
0
Origination and reversal of temporary differences
394,658
12,103
0
0
Recognition of previously unrecognised tax losses
(248,777)
(155,938)
0
0
145,881
(143,835)
0
0
175,719
(77,820)
Total income tax expense
Reconciliation of effective tax rate
Parent
GROUP
2008
2009
2009
2008
$
$
$
$
0
0
Surplus/(deficit) before tax
3,728,703
3,731,272
0
0
Non-taxable surplus
(2,265,393)
(2,605,554)
0
0
Taxable net surplus
1,463,310
1,125,718
0
0
Income tax using the company tax rate of 30% (2008: 33%)
438,993
371,487
0
0
Effect of tax rate in foreign jurisdictions
0
(32,451)
0
0
Non-deductible expenses
(4,519)
(14,648)
0
0
Prior period adjustments
(39,816)
0
0
0
Non-resident insurer tax and NRWT paid
29,838
66,015
0
0
Reduction in tax rate from 33% to 30%
0
3,720
0
0
Utilisation of tax losses
0
(316,005)
0
0
Recognition of previously unrecognised tax losses
(248,777)
(155,938)
0
0
175,719
(77,820)
| BRANZ GROUP Annual Review 2009 |
33
5. INTANGIBLE ASSETS
Parent
GROUP
2008
2009
$
$
2,113,485
2,192,140
78,655
194,743
2009
Cost carried forward
Additions
0
(169,990)
2,192,140
2,216,893
Disposals
1,155,262
1,642,780
487,518
459,335
Current year amortisation
0
(160,820)
Amortisation on disposals
1,642,780
1,941,295
549,360
275,598
Closing cost
Amortisation balance carried forward
Total accumulated amortisation
Carrying value
2008
$
$
2,192,140
2,113,485
194,743
78,655
(169,990)
0
2,216,893
2,192,140
1,642,780
1,155,262
459,335
487,518
(160,820)
0
1,941,295
1,642,780
275,598
549,360
6. PROPERTY, PLANT AND EQUIPMENT
Group and Parent
Cost
Plant and
Equipment
Vehicles
Land
Permanent
buildings
Siteworks
Assets under
development
Total
$
$
$
$
$
$
$
6,318,480
73,313
23,240
4,855,061
348,901
86,673
11,705,668
Additions
163,971
0
0
0
2,833
79,186
245,990
Disposals
0
(8,000)
0
0
0
0
(8,000)
6,482,451
65,313
23,240
4,855,061
351,734
6,482,451
65,313
23,240
4,855,061
351,734
165,859
11,943,658
Transfers between classes
132,869
0
0
(130,269)
(18,083)
15,483
0
Additions
409,508
11,445
0
163,885
105,355
35,491
725,684
Disposals
(1,139,374)
(52,108)
0
(1,896)
(28,480)
(216,833)
(1,438,691)
Balance as at 31 March 2009
5,885,454
24,650
23,240
4,886,781
410,526
Balance as at 1 April 2007
Balance as at 31 March 2008
Balance as at 1 April 2008
165,859 11,943,658
0 11,230,651
Accumulated depreciation and impairment losses
Balance as at 1 April 2007
Depreciation for the year
Disposals
Balance as at 31 March 2008
34
Plant and
Equipment
Vehicles
Land
Permanent
buildings
Siteworks
Assets under
development
Total
$
$
$
$
$
$
$
5,369,765
53,284
0
2,224,012
232,658
0
7,879,719
394,793
3,708
0
135,203
11,763
0
545,467
0
(2,816)
0
0
0
0
(2,816)
5,764,558
54,176
0
2,359,215
244,421
0
8,422,370
| BRANZ GROUP Annual Review 2009 |
Balance as at 1 April 2008
5,764,558
54,176
0
2,359,215
244,421
0
8,422,370
Transfers between classes
34,818
0
0
(34,818)
0
0
0
Depreciation for the year
374,821
2,913
0
165,865
16,092
0
559,691
Disposals
(1,123,847)
(40,904)
0
(1,280)
(1,067)
0
(1,167,098)
Balance as at 31 March 2009
5,050,350
16,185
0
2,488,982
259,446
0
7,814,963
Plant and
Equipment
Vehicles
Land
Permanent
buildings
Siteworks
Assets under
development
Total
$
$
$
$
$
$
$
At 1 April 2007
948,715
20,029
23,240
2,631,049
116,243
86,673
3,825,949
At 31 March 2008
717,893
11,137
23,240
2,495,846
107,313
165,859
3,521,288
At 1 April 2008
717,893
11,137
23,240
2,495,846
107,313
165,859
3,521,288
At 31 March 2009
835,104
8,465
23,240
2,397,799
151,080
0
3,415,688
Carrying amounts
During the year ended 31 March 2009, work commenced on the rebricking of the fire furnace and upgrade of the rotatable guarded hot box. Total assets
under construction at the reporting date totalled $64,597 (2008: Nil) and have been classified as plant and equipment.
7. CONTINGENCIES
Weathertightness
The Group had been named as a defendant or third party in a number of claims relating to weathertightness. In some cases Building Research Association of
New Zealand had been named as the defendant, while in other cases, BRANZ Limited had been named. Building Research Association of New Zealand had
indemnified BRANZ Limited in relation to the costs of pursuing these claims and any damages that BRANZ Limited could have been held liable to pay. A number of claims have not been pursued past filing of claims with the Weathertight Homes Resolution Service (WHRS). It does not appear at this time
that any of these claims will be pursued. Any other WHRS claims that have arisen over the course of the year have either been struck out or withdrawn.
There were four High Court claims in which BRANZ Limited was a party. In all these cases, the claims against BRANZ Limited by the claimant have now
been struck out by the courts or struck out with the claimants’ consent, but BRANZ Limited may still be liable to contribute to any damages found to be
payable to the claimants by other third parties.
BRANZ Limited will continue to vigorously defend any claims made against it and has made no provision for costs or damages.
8. CAPITAL COMMITMENTS
Building Research Association of New Zealand Inc had no capital commitments as 31 March 2009 (2008: $252,298).
9. EQUITY ACCOUNTED INVESTEES
GROUP
2009
2008
$
$
Beacon Pathway Limited
(Unaudited)
(Unaudited)
Carrying amount at beginning of year
41,454
35,809
Equity accounted earnings of associate
(6,838)
5,645
34,616
41,454
Carrying amount at year end
| BRANZ GROUP Annual Review 2009 |
35
GROUP
2009
2008
$
$
(Unaudited)
(Unaudited)
271,924
268,881
69,564
3,043
Carrying amount at year end
341,488
271,924
Total investment in associates
376,104
313,378
62,726
8,689
Construction Information Limited
Carrying amount at beginning of year
Equity accounted earnings of associate
Total share of associates’ net surplus for the year
During the year Building Research Association of New Zealand Inc entered into a research consortium called Structural Timber Innovation Company
Limited (STIC). The main objective of STIC is to develop the knowledge base for the building and construction industry regarding innovative use of timber
framing in large buildings. Given that Building Research Association of New Zealand Inc does not have significant influence over STIC, the investment has
not been equity accounted; rather, the funding provided to STIC during the year has been expensed. The Parent is committed to contribute $8,334 per
month up until June 2013 for STIC to pursue its research objectives.
As at 31 March 2008, the investment in Greenbuild Limited was considered to be impaired and equity accounting was subsequently discontinued for this
investment at that date. In October 2008, the shareholders of Greenbuild Limited voted to put the company into voluntary liquidation, due to unfavourable
trading conditions.
10. STATEMENT OF UNCOMMITTED FUNDS
GROUP
2009
2008
$
$
7,839,001
3,192,574
Prepaid expenses
515,046
659,700
Inventory
355,617
436,624
1,823,334
1,567,690
624,205
660,254
11,157,203
6,516,842
Accounts payable
1,769,524
1,410,405
Employee benefits
499,390
477,863
Income in advance
447,514
453,093
2,716,428
2,341,361
8,440,775
4,175,481
As at 31 March 2009, the Group had the following funds available:
Cash and cash equivalents
Accounts receivable
Work in progress
To meet the following commitments:
Resources available
Due to the unpredictable level of future Levy income, Building Research Association of New Zealand Inc requires a level of uncommitted resources to fund
future activity. As at 31 March 2009, Building Research Association of New Zealand Inc had budgeted the following funding for projects in the following
general areas of research and information dissemination during the forthcoming year:
36
| BRANZ GROUP Annual Review 2009 |
Projects to be undertaken by BRANZ Limited
GROUP
Advisory and building controls
2009
2008
$
$
847,000
750,000
1,486,840
1,477,161
Economics
267,000
140,250
Education
400,000
400,000
Energy and environment
695,000
832,076
Fire and structural engineering
1,226,102
1,158,636
Publications
1,275,000
1,312,500
803,058
653,000
7,000,000
6,723,623
Behaviour of building materials
Other
Projects to be undertaken by external parties
GROUP
Sundry research
2009
2008
$
$
967,500
1,170,000
Refurbishment of Judgeford facilities
The Board is required to ensure that it maintains the capability of the organisation to enable the delivery of research into the future. The Board has set
aside $8 million of cash reserves to upgrade the Judgeford facilities. A concept plan for the proposed upgrade has been developed, which is now being
costed to ensure it fits within budget.
11. RELATED PARTIES
Group entities
Country of incorporation
GROUP
2009
2008
%
%
BRANZ Limited
New Zealand
100
100
BRANZ Pty Limited
Australia
100
100
Services sold to related parties
PARENT
GROUP
2008
2009
2009
2008
$
$
$
$
1,382,000
1,456,000
0
0
0
0
Beacon Pathway Limited
416,388
274,213
0
0
CSIRO joint venture
0
7,990
1,382,000
1,456,000
416,388
282,203
BRANZ Limited
| BRANZ GROUP Annual Review 2009 |
37
Services purchased from related parties
PARENT
2008
GROUP
2009
$
$
6,489,000
0
234,498
217,250
150,000
250,000
0
0
75,000
467,250
6,948,498
2009
2008
$
$
BRANZ Limited – consulting fees
0
0
BRANZ Limited – management charge
0
0
Beacon Pathway Limited
Greenbuild Limited
Structural Timber Innovation Company
150,000
217,250
0
250,000
75,000
0
225,000
467,250
Building Research Association of New Zealand Inc charges rent to BRANZ Limited for the use of property, plant and equipment. BRANZ Limited charges
consulting fees for research work and administration services carried out on behalf of Building Research Association of New Zealand Inc. BRANZ Limited
also charges Building Research Association of New Zealand Inc for its share of the group CEO remuneration costs, provision of accounting and IT
services, and its share of insurance costs. In addition, BRANZ Limited charges its subsidiary BRANZ Pty Limited consulting fees for the technical services
that it provides. BRANZ Limited pays BRANZ Pty Limited a management charge to cover their administration costs.
Year end accounts receivable from related parties
PARENT
GROUP
2008
2009
$
$
0
0
0
0
2009
Beacon Pathway Limited
2008
$
$
130,485
35,114
130,485
35,114
Year end accounts payable to related parties
PARENT
GROUP
2008
2009
2009
2008
$
$
$
$
651,591
587,708
0
0
651,591
587,708
0
0
BRANZ Limited
Building Research Association of New Zealand Inc has signed a deed of guarantee and indemnity for both BRANZ Limited and BRANZ Pty Limited, which
guarantees and indemnifies the performance of all obligations of both companies.
No provision has been required, nor any expense recognised for impairment of receivables for any loan or other receivables to related parties (2008: Nil).
Key management personnel
Key management personnel comprised:
GROUP
Short-term employee benefits
2009
2008
$
$
342,871
716,261
One of the directors served as the acting Chief Executive during both fiscal years. The Board member fees do not include the remuneration received in
relation to this role.
12. SUBSEQUENT EVENTS
There were no significant events after balance date.
38
| BRANZ GROUP Annual Review 2009 |
AudiT rEpOrT
To the members of Building Research Association of New Zealand Inc
We have audited the summary financial statements of Building Research Association of New Zealand Inc for the year ended
31 March 2009 as set out on pages 27 to 38.
Responsibilities of the Directors and Auditor
The Directors are responsible for the preparation of summary financial statements in accordance with generally accepted accounting
practice in New Zealand. It is our responsibility to express to you an independent opinion on the financial statements presented by
the Directors.
Basis of Opinion
Our audit was conducted in accordance with New Zealand Auditing Standards and involved carrying out procedures to ensure the
summary financial statements are consistent with the full financial statements on which the summary financial statements are
based. We also evaluated the overall adequacy of the presentation of information in the summary financial statements against the
requirements of FRS-43: Summary Financial Statements.
Our firm has also provided other services to the Association in relation to taxation and general accounting services. These matters have
not impaired our independence as auditors of the Association. The firm has no other relationship with, or interest in, the Association.
Unqualified Opinion
In our opinion:
❚ the summary financial statements have been correctly extracted from the full financial statements; and
❚ the information reported in the summary financial statements complies with FRS-43: Summary Financial Statements and is
consistent in all material respects with the full financial statements from which it is derived and upon which we expressed an
unqualified audit opinion in our report to members dated 17 June 2009.
We completed our work for the purposes of this report on 17 June 2009.
wellington
| BRANZ GROUP AnnuAl Review 2009 |
39
Directory
Websites
www.branz.co.nz
www.level.org.nz
Advisory helplines
For the industry:
0800 80 80 85
For the public:
0900 5 90 90 ($1.99+GST per minute)
Head office
Telephone: +64 4 237 1170
Fax: +64 4 237 1171
Email: branz@branz.co.nz
Address:
1222 Moonshine Road
RD1, Porirua 5381
Private Bag 50908
Porirua 5240, New Zealand
Appraisals
Telephone:
0800 080 063
Email: appraisals@branz.co.nz
BankInsurance
Bank of New Zealand
181 High Street PO Box 30 847
Lower Hutt
Marsh Limited
Level 8, 113–119 The Terrace
PO Box 699
Wellington
AuditLegal
KPMG
10 Customhouse Quay
Box 996
Wellington
40
| BRANZ GROUP Annual Review 2009 |
Gibson Sheat
Level 3, Gibson Sheat Centre
Cnr Margaret Street and Queens Drive
Private Bag 31905
Lower Hutt